European stocks extended a global slide after terrorists struck a crowded tourist street in Barcelona, exacerbating unease triggered by mounting concerns about dysfunction in US President Donald Trump's administration.
Travel and leisure shares led the decline of the Stoxx Europe 600 index, down 1.4 per cent, with airlines the worst-performing as investors dropped stocks exposed to tourist flows. Easyjet, Ryanair, British Airways owner IAG and Lufthansa were down 2.3 to 3.2 per cent.
![European stocks extended a global slide after terrorists struck a crowded tourist street in Barcelona.](http://web.archive.org./web/20170823030247im_/https://www.fairfaxstatic.com.au/content/dam/images/g/t/w/p/h/k/image.related.articleLeadwide.620x349.gxzoi0.png/1503045759742.jpg)
The risk-off moves also hit banks, down 1.2 per cent, with Deutsche Bank and BNP Paribas among the worst performers.
Equities fell from Tokyo to Sydney earlier after the S&P; 500 Index on Thursday tumbled 1.5 per cent, its second-biggest drop for 2017. Australia's benchmark S&P;/ASX 200 Index slid 0.6 per cent on Friday to 5747.1 points.
Concerns that Mr Trump's stimulus plans are in peril are weighing on stocks, with heightened terror fears adding to the malaise after at least 13 people died when a van plowed into pedestrians in Barcelona.
The terror attack was a reminder that geopolitical risks remain a threat, with nerves still raw after last week's escalation of tensions on the Korean peninsula.
![Travel and leisure shares led the decline of the Stoxx Europe 600 index.](http://web.archive.org./web/20170823030247im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/o/t/p/5/image.related.articleLeadwide.620x349.gxzoi0.png/1503045759742.jpg)
"The attack in Spain and the rising doubt that Trump will be able to push through with his economic policies are among a series of unfortunate events that's creating uncertainty for investors to pull back and capitalise on their gains," said Jonathan Ravelas, the chief market strategist at BDO Unibankr.
Bloomberg and Reuters